AEC10

ACTIVITY NO. 3
NAME: __________________

1. Gross estate of resident or citizen. Alintana, died leaving the following properties:

Residential house in Marikina City P2,500,000

Car in the Philippines 650,000
Farm in Baler, Quezon 1,200,000
Shares of stock in Campus Trading Corp., domestic
corporation 550,000
Condominium unit in Vancouver, Canada 4,000,000
Time deposit in a Canadian Bank 260,000

Compute the gross estate of Alintana if she was a:

a. Filipina residing in Marikina City.

b. Filipina residing in Vancouver, Canada.
c. Canadian permanently residing in the Philippines.

2. Gross estate of a nonresident alien. Engeland, a British citizen, died while domiciled in
London. He left the following properties:

a. House and lot in London P3,000,000

b. House and lot in Manila 2,000,000
c. Shares of stock in a British Corp. 250,000
d. Shares of stock in a Philippine Corp. 125,000
e. Shares of stock in a Hong Kong Corp. operating and
managed in Makati 175,000
f. Accounts receivable from a Filipino debtor 60,000
g. Proceeds of a revocable life insurance policy issued by a
Philippine insurance company 150,000
h. Proceeds from a life insurance policy issued by a US
Corporation 80,000
i. Savings deposit in a Manila Bank 45,000
j. Savings deposit in a New York Bank 90,000
k. Lease contract over his London apartment rented by the
Philippine consulate 350,000

Compute the gross estate assuming:

a. There is reciprocity
b. There is no reciprocity

3. Hugo H. Miller, an American citizen, was born in Santa Cruz, California, U.S.A., in 1883. In
1905, he came to the Philippines. From 1906 to 1917, he was connected with the public school
system, first as a teacher and later as a division superintendent of schools. After his
retirement, Miller accepted an executive position in the local branch of Ginn & Co., book
publishers with principal offices in New York and Boston, U.S.A., up to the outbreak of the
Pacific War.

From 1922 up to December 7, 1941, he was stationed in the Philippines as Oriental representative
of Ginn & Co., covering not only the Philippines, but also China and Japan. His principal work was
selling books specially written for Philippine schools. In or about the year 1922, Miller lived at the
Manila Hotel. His wife remained at their home in Ben-Lomond, Santa Cruz, California, but she
used to come to the Philippines for brief visits with Miller, staying three or four months. Miller also
used to visit his wife in California.

He never lived in any residential house in the Philippines. After the death of his wife in 1931, he
transferred from the Manila Hotel to the Army and Navy Club, where he was staying at the
outbreak of the Pacific War. On January 17, 1941, Miller executed his last will and testament in
Santa Cruz, California, in which he declared that he was "of Santa Cruz, California". On December
7, 1941, because of the Pacific War, the office of Ginn & Co. was closed, and Miller joined the
Board of Censors of the United States Navy. During the war, he was taken prisoner by the
Japanese forces in Leyte, and in January, 1944, he was transferred to Catbalogan, Samar, where
he was reported to have been executed by said forces on March 11, 1944, and since then, nothing
has been heard from him.

The Collector maintains that under the tax laws, residence and domicile have different meanings;
that tax laws on estate only mention resident and non-resident and no reference whatsoever is
made to domicile; that Miller during his long stay in the Philippines had required a "residence" in
this country, and was a resident thereof at the time of his death.

De Lara, the Ancilliary Administrator, however, equally maintains that for estate tax purposes, the
term "residence" is synonymous with the term domicile particularly that of Velilla vs. Posadas, 62
Phil. 624, wherein this Tribunal used the terms "residence" and "domicile" interchangeably and
without distinction

ISSUE: Is Miller a resident or a non-resident of the Philippines?

4. The couple living together are disqualified by impediment to marry each other. Sam B.
Ajero, 55, married to Paz N. Ciosa, 60 years old in 1975, cohabiting with Miss Tress, 23 years
old, his office secretary. On February 14. 2011 Sam died leaving the following properties:

Properties acquired by Sam and Paz during marriage P3,400,000

Parcels of land inherited by Paz from her parents during

Marriage 2,500,000

Natural fruits on the land inherited 250,000

House in Quezon City inherited by Sam from his parents

before marriage 1,850,000

Condominium unit bought by Sam as gift to Miss Tress 1,000,000

Jewelries bought from salary of Miss Tress 200,000

Appliances inside the condo (60:40 share by Sam & Miss

Tress, respectively) 500,000

Joint deposit of Sam and Miss Tress 88,000

REQUIRED: Compute the following:

1. Exclusive property of Sam

2. Conjugal property of Sam and Paz
3. Gross estate
5. Philippine Blooming Mills (PBM) obtained a P50,300,000 loan from Ayala Investment and
Development Corporation (AIDC). As added security for the credit line extended to PBM,
Alfredo Ching, Executive Vice President of PBM, executed security agreements making
himself jointly and severally answerable with PBM's indebtedness to AIDC.

PBM failed to pay the loan. Thus, AlIDC filed a case for sum of money against PBM and
Alfredo Ching.

ISSUE: Are the debts chargeable against the conjugal property of spouses Ching?